In recent years, investors have closely followed quantum computing. If successful, the technology could increase computing speeds exponentially.
The problem with this technology is the delicate nature of quantum bits (qubits) and high error rates. Such challenges mean that widespread commercial viability is likely several years away.
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However, companies of all sizes are working to make the technology viable, and if successful, it could dramatically transform companies and the tech industry at large. Knowing this, if I could only invest $1,000, I would choose IonQ (NYSE: IONQ) as my quantum computing stock. Here’s why.
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What about other quantum computing companies?
To be clear, I regard this as one $1,000 investment within a diversified portfolio. IonQ is a risky choice, and I would consider this a speculative investment.
Long-time tech investors might remember that numerous internet information companies emerged before Google’s parent company, Alphabet, became the dominant search engine. Likewise, the quantum computing industry is likely to undergo a similar shakeout.
This poses a significant risk to IonQ and to start-up peers such as Rigetti Computing and D-Wave Quantum. These companies, IonQ included, are all-in on the technology, and it is unclear how they will survive if they fail to become top players in the quantum computing industry.
For the more risk-averse investors, Alphabet and IBM are also quantum computing investment options. The fact that these are established tech businesses bodes well for the stocks. Still, they only earn a negligible amount of revenue from the technology, which makes it debatable whether one can call them “quantum computing stocks” in any meaningful sense.
The state of IonQ
IonQ’s competitive advantages have also eased many of my concerns about the company. It has taken a different path than Google or IBM by utilizing trapped-ion technology. The trapped ions can hold their quantum states longer. That reduces error rates and differentiates the company from its more established competitors.
Moreover, it operates as a quantum-as-a-service (QaaS) model. Thus, it is the only provider natively integrated with Google Cloud, Microsoft‘s Azure Quantum, and Amazon‘s Braket.
Additionally, IonQ is a partner of the industry’s top chip company, Nvidia. IonQ seems to be following Nvidia’s playbook in quantum, which makes the agreement appropriate.
Under the terms of the deal, Nvidia will link its AI supercomputing rack with IonQ’s Superion 256 system. They will also orchestrate joint workloads on Nvidia’s CUDA-Q platform, allowing Nvidia’s GPUs and IonQ’s QPUs to work seamlessly with one another, giving it an edge over competitors.
Despite these attributes, IonQ remains financially risky. Even with a 412% yearly revenue increase in the first half of 2026, it experienced $273 million in negative free cash flow during the same period.
IonQ has more than $2.1 billion in liquidity for now. That would imply nearly four years’ worth of liquidity at current burn rates. Still, with commercial viability years away, it may need to eventually issue more shares or debt.
Furthermore, its valuation bears little relation to its condition. Its price-to-sales (P/S) ratio is 44, and the 26 forward P/S ratio offers little comfort to those looking for a better value.
However, if IonQ successfully leverages its competitive advantages and partnerships, the stock could experience considerable gains over time. That alone could make it worthwhile to risk $1,000 on IonQ’s future.
Moving forward with IonQ stock
It could be worth it for risk-tolerant investors to invest $1,000 in IonQ stock.
As a start-up, IonQ is not in a strong financial position, and since it has no obvious Plan B if it fails to succeed in quantum computing, investors face a serious risk of losing their investments.
Nonetheless, many investors are comfortable taking a $1,000 chance on a speculative stock within a diversified portfolio. Despite its limited resources, it has shown promising results using its trapped-ion technology. Moreover, the fact that it persuaded Nvidia to partner with it dramatically increases its chance of success.
Ultimately, if one has the appetite for risk and the foresight to back a technology with limited commercial viability in the foreseeable future, it may be worth taking a chance on IonQ stock.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, IonQ, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
